Five energy companies have offered to pay customers up to £100 to use power at off-peak times. National Grid Electricity System Operator (ESO) said Britain could face three-hour planned power cuts if there is a shortage of gas and the scheme is being set up in the hopes to prevent blackouts this winter.
This has been classed as a worst-case scenario however with system operators insisting it is "unlikely" we'll run out of power. The prospect has still been enough however to prompt several energy companies to draw up compensation schemes for this winter.
Some have been launched under the umbrella of Ofgem's official Demand Flexibility Service, but many energy firms have unveiled their own schemes. The ESO says taking part could save households £100 this winter - but you need to have a smart meter to take part.
Which energy suppliers are taking part?
Octopus Energy: Octopus Energy was the first supplier to officially sign up to the new initiative which piloted the ESO scheme earlier this year. It expects to pay customers £4 on average during peak times between November and March through its Saving Sessions service.
The energy supplier says households could save £100 in total over winter if their electricity use is reduced by 1kWh once or twice a week and up to around 25 times. The money will be paid as "OctoPoints" which are redeemable to your energy account as credit in pounds.
E.On Next: E.On Next is starting to write to customers this week and is inviting them to sign up to the scheme. It said households will see savings of £100 - based on £3 per kWh - if they reduce their energy usage 29 times over winter. The credit will then be paid into their energy account.
Utilita Energy: Utilita Energy customers can save up to £76.44 for using energy at off-peak times under the firm's Power Payback scheme. The Utilita trial lets customers receive energy credits for avoiding or reducing energy usage during peak times this winter.
If the full trial is a success, the Power Payback scheme will be opened up to every Utilita household, helping to cut their bills by up to £61.2million each year - £76.44 per home. Each house taking part will get a text one hour before they need to try to use less power.
There will be one period a week where this happens between 5.30pm to 10.30pm on the day. If households manage to use less energy in this period they will get energy credits equivalent to the cost savings.
OVO Energy: OVO Energy has announced a similar scheme but it is separate one to the one being run by the ESO. OVO customers who cut their energy use by 12.5% between 4pm and 7pm will receive £20 each month. The new Power Move trial will run from November to March as well, meaning OVO households can also get up to £100.
British Gas: British Gas households have to reduce their electricity use by around 30% between 4pm and 7pm to get any sort of money back. These figures are subject to change, as final details have yet to be published and British Gas has not yet said how much money customers could save.
